Real Estate Math
A property is appraised at $295,000. The buyer puts 5% down and the lender requires PMI at 0.65% annually on the loan amount. What is the monthly PMI premium?
A$151✓ Correct
B$1,812
C$160
D$143
Explanation
Down payment = $295,000 × 5% = $14,750. Loan amount = $295,000 − $14,750 = $280,250. Annual PMI = $280,250 × 0.65% = $1,821.63. Monthly PMI = $1,821.63 ÷ 12 = $151.80 ≈ $151.
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